Author: Dr. Muhammad Zia-ur-Rahman Azmi (رحمہ الله)
✔ Food items like dates or wheat
✔ Vehicles
✔ Manufactured goods
This is permissible because Riba (usury) does not apply between gold and silver when exchanged for food or manufactured goods.
However, if gold is purchased on installments using gold, silver, or currency, then it is haram (forbidden) because the exchange of gold for gold has two strict conditions in Islam:
① Equality in Weight – Both gold items must be of equal weight.
② Immediate Exchange – The possession of gold must be transferred within the same meeting.
When gold is sold in exchange for silver or currency, only one condition applies:
✔ Possession must be taken before leaving the meeting.
The Prophet Muhammad (ﷺ) said:
"Gold for gold, must be equal in weight and hand to hand."
(Sahih Muslim, Hadith No. 1587/81)
In another hadith, he (ﷺ) stated:
"Gold for gold, silver for silver, wheat for wheat, dates for dates, barley for barley, and salt for salt – must be equal and hand to hand. But if the commodities are different, then trade as you wish, provided the exchange is immediate."
(Ibn Uthaymeen: Noor 'Ala Ad-Darb: 16/235)
Thus, installment-based gold purchases using currency, gold, or silver violate this principle and are impermissible in Islam.
Permissibility of Buying Gold on Installments
If a person buys gold on installments in exchange for items other than currency, gold, or silver, then there is no harm in such a transaction. For example, if gold is bought in exchange for:✔ Food items like dates or wheat
✔ Vehicles
✔ Manufactured goods
This is permissible because Riba (usury) does not apply between gold and silver when exchanged for food or manufactured goods.
However, if gold is purchased on installments using gold, silver, or currency, then it is haram (forbidden) because the exchange of gold for gold has two strict conditions in Islam:
① Equality in Weight – Both gold items must be of equal weight.
② Immediate Exchange – The possession of gold must be transferred within the same meeting.
When gold is sold in exchange for silver or currency, only one condition applies:
✔ Possession must be taken before leaving the meeting.
Evidence from Hadith
The Prophet Muhammad (ﷺ) said:"Gold for gold, must be equal in weight and hand to hand."
(Sahih Muslim, Hadith No. 1587/81)
In another hadith, he (ﷺ) stated:
"Gold for gold, silver for silver, wheat for wheat, dates for dates, barley for barley, and salt for salt – must be equal and hand to hand. But if the commodities are different, then trade as you wish, provided the exchange is immediate."
(Ibn Uthaymeen: Noor 'Ala Ad-Darb: 16/235)
Thus, installment-based gold purchases using currency, gold, or silver violate this principle and are impermissible in Islam.